🏠 Real Estate & Mortgages
Home Affordability Calculator
Estimate the maximum home price you can support.
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Estimate the maximum home price you can support. This dedicated page is built for fast, clean calculations and search visibility.
Enter your values, click calculate, and see the result instantly. The page uses a simple, focused layout to improve usability on mobile and desktop.
How to use this calculator
- Open the home affordability calculator page.
- Enter the required values in the form fields.
- Click Calculate to see the result and breakdown.
- Use the related links to explore similar tools.
Results are estimates. For lending, taxes, trading, nutrition, or medical decisions, verify with a qualified professional.
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How much house can you actually afford
Lenders use two primary ratios to assess home loan eligibility. The FOIR (Fixed Obligation to Income Ratio): most Indian banks cap this at 40–50% of gross monthly income. The LTV ratio: banks lend up to 80–90% of property value per RBI guidelines (90% for loans below ₹30 lakh, 80% for ₹30–75 lakh, 75% above ₹75 lakh).
A practical rule: limit total home loan EMI to 30–35% of net take-home income (after all deductions), not gross. Using gross income inflates affordability — your actual cash flow is what matters for monthly sustainability.
True affordability checklist
- Emergency fund: 6 months of expenses maintained separately, not touched for down payment.
- Down payment: 20%+ of property value available (higher than the minimum LTV allows, to reduce loan burden).
- Additional costs: 7–10% of property value for stamp duty, registration, GST (on under-construction), brokerage, and interiors.
- Future obligations: car EMI, children's education, parents' medical — all reduce effective affordability.
Stress-test your affordability at interest rates 1.5–2% above today's rate to ensure the EMI remains manageable if rates rise. A 1% rate increase on ₹50 lakh over 20 years raises EMI by approximately ₹3,300/month.
Frequently asked questions
What income do I need to buy a ₹50 lakh home?▼
For a ₹50 lakh property with 20% down payment (₹10 lakh), you'd need a ₹40 lakh home loan. At 8.5% over 20 years, EMI is approximately ₹34,700. At a 40% FOIR, you need monthly gross income of ₹86,750 minimum. At 30% of net income (safer threshold), assuming net is 75% of gross, you'd need gross income of ~₹1.55 lakh/month.
Should I include my spouse's income for home loan eligibility?▼
Yes — most banks allow joint home loans and consider combined income. A joint loan also allows both applicants to independently claim Section 24b (interest) and 80C (principal) deductions under the old tax regime, effectively doubling the tax benefit for couples who co-own the property. Co-borrowers need to be co-owners of the property for the tax benefit to apply.
How does existing debt affect home loan eligibility?▼
All existing EMIs (car loan, personal loan, credit card minimum) are included in your FOIR. If your car EMI is ₹15,000/month and your maximum FOIR is 50% of ₹1 lakh gross = ₹50,000, your maximum home loan EMI is only ₹35,000. Clearing high-interest short-term debt before applying can significantly increase your eligibility.
What credit score is needed for the best home loan rates?▼
CIBIL score above 800 qualifies for the best rates from most banks. Scores of 750–800 are acceptable but may attract slightly higher rates (0.1–0.25%). Below 750, some banks will decline or require a co-applicant. Check and clean your credit report at least 6 months before applying for a home loan.